I had read something on Nintendo's website a while ago, and read something about it being illegal. But my memory was off, and it pretty much said what you told me.
Would making an edit of a game, such as ash grey, be illegal? I come to realize that I don't know too much about the boundaries.
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Publishers(like Nintendo) will also say it's illegal to own backups of your games, but last I remember we are allowed to own a backup copy of our game(rom) if we have the physical copy. This is just what I remember reading a while ago though.
Editing games might be okay, but distributing them is not.
(Pretty irrelevant but I'm gonna post it anyways) How do I get 3DS output on my TV or Wii U?
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I believe some guy will mod a 3DS so it can output for recording and such. I'm sure a little googling will turn something up.